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AIRPORT COMPLIANCE BASICS
• This presentation was given at the TxDOT Aviation Conference in Austin, Tx on May 14, 2013.
Airport Compliance • Grant assurances are part of every
project involving federally funding for NPIAS airports
• State funding for TASP only – non NIPIAS airports has parallel grant assurances
• Airport owners (sponsors), tenants,
and users have rights and obligations
• FAA Order 5190.6B (September 30, 2009) grant assurances is guiding document
The 39 Grant Assurance Obligations
How Long Am I Obligated? • Most contracts for
improvements (runways, taxiways, lights, etc.) are for 20 years
• Certain land grant or purchase agreements / contracts run as long as the land is part of the airport.
FAA / TxDOT Enforcement • There is an informal resolution process, no formal paperwork,
arbitrate between the parties by FAA compliance office. • FAR part 13 describes rules of practice to investigate
alleged violations – this is an informal but documented process.
• FAR part 16 is the formal process – sometimes leads to formal legal determination by the FAA Administrator.
Airport sponsors that do not meet compliance standards can lose future federal or state funding
So, What if I Have a Problem? • If you cannot resolve an issue concerning grant
assurances, consider the following:
• Contact TxDOT planning for compliance questions. FAR Part 13 determination starts with written comments from the sponsor, tenant, or concerned citizen.
• We ask for as many of the facts concerning the issue as possible and what end results are desired…
So, What if I Have a Problem? • TxDOT, for state compliance issues and as an
agent for the FAA for federal compliance, will review, research, meet, discuss, etc. and issue a finding in writing to the interested parties.
• Issues of disagreement
between parties which do NOT involve compliance are usually local issues. TxDOT will render any assistance but will not use the Part 13 process – only advise.
So, What if I Have a Problem? • TxDOT / FAA compliance represent the interest
of the public money invested. TxDOT and the FAA airport development and compliance offices will assist the sponsor and tenants equally in resolving compliance concerns.
• TxDOT and the FAA ADO have a partnership with the sponsor for airport development however in compliance disputes TxDOT must treat all parties equal in resolving the issue.
So, What if I Have a Problem? • When a determination is given by TxDOT, either
the sponsor or other party(s) may ask for a second FAR part 13 review or file for a formal determination under FAR part 16.
• The process for grant assurance compliance is one of advise and consent by TxDOT and the FAA ADO. When reviewing an issue, TxDOT and the FAA will define the intent and limits for compliance to the parties involved rather that dictate exactly what steps the sponsor or other party need to take. Most compliance issues have several possible acceptable solutions.
Of the 39 assurances, generally those that require day-to-day management include: 4. Good title 5. Preserving Rights and Powers 11. Pavement Preventive Maintenance 13. Accounting, Audit, Record Keeping 19. Operations and Maintenance 21. Compatible Land Use 22. Economic Nondiscrimination 23. Exclusive Rights 24. Fee and Rental Structure
The Assurances
Maintaining the infrastructure – RAMP funds are a good way to keep up Temporary Airport Closures – may be permitted under certain circumstances – build out or repair / temporary obstructions / aeronautical activity events with FAA concurrence. Airspace Evaluation – 7460-1 process for construction on the airport or within 20,000* feet of the closest runway
Assurance 19, Operations and Maintenance
Sponsor must make the airport available for aeronautical activity. All parties seeking to provide aeronautical services must be reasonably accommodated. Rates and fees need NOT be exactly equal among all tenants – if Sponsor can show a sound accounting principle for differences – examples: - Prime vs. secondary locations for FBOs - Airport-based aeronautical services vs. “drive-on” operators
Assurance 22, Economic Nondiscrimination
Sponsor may not mandate any tenant or transient purchase fuel, supplies, or services from the Sponsor run operation or any tenant service provider. Sponsor may exercise a Proprietary Exclusive Right to be the sole provider of services on their airport; this right may NOT be contracted out or sublet. Sponsor may not permit one tenant to lease or tie up all airport property – Sponsor must respond to a request to lease space or property on the airport in a timely manner – otherwise this is a form of exclusive right.
Assurance 23, Exclusive Rights
Rates – sponsor needs to structure rates to adjust for inflation & costs. FAA recommends 5 year adjustment minimum. Lease Duration, Sponsor owned Structures – FAA recommends 20 years maximum, often month-to-month Lease Duration, Ground Lease Only - Only of sufficient duration to amortize tenant’s cost of the structure. FAA discusses up to 30 years (GA 38) Reversion of Property – tenant titles property to sponsor at the end of term – NOT required by law or GA, but can be a good business move in some cases
Assurance 24, Fee and Rental Structure
FAA and “Through-The –Fence” Operations • TTF is private property access to a publically funded airport
• Interim policy published 3/18/2011 in the FR
• Affects residential (RTTF) only; FAA regions must assist airports to meet standards for access
Federal Register - Mar 18, 2011, Vol. 76, No. 53, page 15028
FAA Reauthorization Act • Congressman Graves of Missouri
added new section to Fed law (49 USC 47107)
• Removes restrictions on RTTF; existing or future
• FAA is evaluating and revising guidelines
www.aopa.org – “Advocacy” – “ASN Resources”
Good source for airport users to understand the relationship between the FAA, airport owner, and themselves for grant assurances www.aopa.org – Advocacy – ASN Resources – AOPA Guides – “FAA Airport Compliance”